CHAPTER 12.3. INTRASTATE AIRCRAFT DEDUCTION

IC 6-1.1-12.3
    Chapter 12.3. Intrastate Aircraft Deduction

IC 6-1.1-12.3-1
Application
    Sec. 1. This chapter applies only to the following:
        (1) Aircraft that:
            (A) have a seating capacity of not less than nine (9)passengers;
            (B) are used in the air transportation of passengers orpassengers and property; and
            (C) are owned or operated by a person that is:
                (i) an air carrier certified under Federal AviationRegulation Part 121; or
                (ii) a scheduled air taxi operator certified under FederalAviation Regulation Part 135.
        (2) Aircraft that:
            (A) are used to transport only property, regardless ofwhether the aircraft is operated as a common carrier forcompensation; and
            (B) are owned or operated by a person that is:
                (i) an air carrier certified under Federal AviationRegulation Part 121; or
                (ii) a scheduled air taxi operator certified under FederalAviation Regulation Part 135.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-2
"Abatement property"
    Sec. 2. As used in this chapter "abatement property" refers toaircraft described in section 1 of this chapter.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-3
"Aircraft"
    Sec. 3. As used in this chapter, "aircraft" has the meaning set forthin 49 U.S.C. 40102.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-4
"Air transportation"
    Sec. 4. As used in this chapter, "air transportation" meanstransportation of passengers or property by aircraft as a commoncarrier for compensation.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-5
"Business entity"
    Sec. 5. As used in this chapter, "business entity" refers to acorporation (as defined in IC 6-3-1-10) or partnership (as defined in

IC 6-3-1-19).
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-6
"Intrastate airline service"
    Sec. 6. As used in this chapter, "intrastate airline service" meansservice provided in Indiana by an aircraft that is used during aservice period in which ground time is determined for purposes ofcalculating ad valorem property taxes to fly:
        (1) either directly:
            (A) between:
                (i) a qualifying medium hub airport; and
                (ii) at least two (2) qualifying underserved airports; or
            (B) between:
                (i) two (2) qualifying commercial service airports, one (1)of which is not a qualifying underserved airport; or
                (ii) a qualifying medium hub airport and a qualifyingcommercial service airport other than a qualifyingunderserved airport; and
        (2) a route described in subdivision (1)(A) or (1)(B) at least five(5) times per week in each week during the service periodimmediately preceding an assessment date.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-7
"Qualifying commercial service airport"
    Sec. 7. As used in this chapter, "qualifying commercial serviceairport" means a commercial service airport (as defined in 14 CFR158.3, as effective January 1, 2003) that is located in Indiana.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-8
"Qualifying medium hub airport"
    Sec. 8. As used in this chapter, "qualifying medium hub airport"means a medium hub airport (as defined in 14 CFR 398.2, aseffective January 1, 2003) that is located in Indiana.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-9
"Qualifying underserved airport"
    Sec. 9. As used in this chapter, "qualifying underserved airport"means a qualifying commercial service airport that serves amunicipality that is not directly connected by an interstate highwaywith a municipality served by a qualifying medium hub airport.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-10
"Service period"
    Sec. 10. As used in this chapter, "service period" means a periodbeginning March 1 in a year immediately preceding an assessment

date and ending on February 28 in the year containing an assessmentdate.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-11
"Taxpayer"
    Sec. 11. As used in this chapter, "taxpayer" means a businessentity that is liable under IC 6-1.1-2-4, as applied under IC 6-1.1-3 orIC 6-1.1-8, for ad valorem property taxes on abatement property.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-12
Deduction; service to underserved airports
    Sec. 12. A taxpayer is entitled to a deduction from the assessedvalue of abatement property that is used to provide intrastate airlineservice between locations described in section 6(1)(A) of thischapter.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-13
Deduction; service not involving underserved airports; limitations
    Sec. 13. A taxpayer is entitled to a deduction from the assessedvalue of abatement property used to provide intrastate airline servicebetween at least two (2) locations described in section 6(1)(B) of thischapter only if the same or another taxpayer provides intrastateairline service between locations described in section 6(1)(A) of thischapter during the same service period.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-14
Amount of deduction; ground time
    Sec. 14. The deduction applies to ad valorem property taxescalculated using aircraft ground times. The amount of a deductionavailable under section 12 or 13 of this chapter is equal to theproduct of:
        (1) one hundred percent (100%) of the assessed value of theabatement property; multiplied by
        (2) with respect to the ground time determined for purposes ofcalculating ad valorem property taxes for the aircraft, thequotient of:
            (A) the ground time that immediately precedes a flight to anIndiana destination; divided by
            (B) the total ground time.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-15
Limitations; weekly service requirements; service to underservedairports
    Sec. 15. (a) Any part of an ad valorem property tax assessmentattributable to ground times during a week:        (1) in which the requirements of section 6(2) of this chapter arenot met; and
        (2) for which noncompliance is not waived under section 16 ofthis chapter;
may not be deducted under section 12 or 13 of this chapter.
    (b) Any part of an ad valorem property tax assessment attributableto ground times during a week in which intrastate air servicedescribed in section 6(1)(A) of this chapter is not also available maynot be deducted under section 13 of this chapter.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-16
Weekly service requirements; waiver
    Sec. 16. Based on:
        (1) extraordinary circumstances that prevent a taxpayer fromusing abatement property to meet the requirements undersection 6(2) of this chapter; or
        (2) the start-up of service after the beginning of a serviceperiod;
the airport operator of the airports (other than a qualifying mediumhub airport) that were directly affected by reduced service may waivecompliance with section 6(2) of this chapter during all or part of theperiod in which the circumstances preventing regular serviceoccurred. A taxpayer shall be treated as in compliance with section6(2) of this chapter to the extent that compliance with the provisionis waived under this section.
As added by P.L.224-2003, SEC.279.

IC 6-1.1-12.3-17
Claiming deduction
    Sec. 17. To qualify for the deduction, the taxpayer must claim thededuction, in the manner prescribed by the department of localgovernment finance, on the taxpayer's personal property tax returnfiled under IC 6-1.1-3 or IC 6-1.1-8 (or an amended return filedwithin the time allowed under this article) for the abatement propertyto which the deduction applies.
As added by P.L.224-2003, SEC.279.